Supercell CEO Ilkka Paananen on AI labs, rising costs, and why mobile games need reinvention

Supercell CEO Ilkka Paananen believes mobile gaming urgently needs bold ideas. He stressed the importance of taking bigger creative risks and reimagining what mobile games could look like by 2030.

The Clash of Clans maker noted that 60% of mobile playtime last year went to games over six years old, warning that without fresh hits, the industry risks losing players’ attention.

“We need to take bigger risks," said Supercell CEO and co-founder Ilkka Paananen in an interview with The BBC. 

"We have to create new kinds of game experiences," he said. “We have a lot of very, very talented, ambitious teams who are trying to reimagine what mobile games might look like in, say, 2030, and I wish I had the answer. 

“I don't, but you can certainly expect different types of game experiences than you've seen so far on mobile."

Cost of making games today

The Supercell boss further emphasised the need for innovation, noting that 60% of mobile gaming time last year was spent on games over six years old, while only 10% went to new releases. 

He warned that without fresh, exciting titles, the industry risks losing player attention.

“The competition for people's free time is so much tougher these days. And not only are you competing against other games, but you're competing against social media, music streaming, video streaming, etc, all available on your mobile phone," he said. 

Paananen noted that one reason fewer new mobile games are being released is rising development costs. Unlike the early days, mobile games are no longer cheaper or simpler to make than console or PC titles.

"Building games has actually become a lot more expensive," said Paananen. “The main reason is that the platform [mobile] enables you to do way more today than 10 years ago. And the other thing is that the kind of a bar is just way higher in consumers' minds."

On Squad Busters launch and AI integration 

Squad Busters launched strongly last year, but its momentum has since declined.

"The truth is that it hasn't met our ambition, at least not yet," said Paananen. "The team has made some really, really bold changes to the game. And of course, time will tell." 

Moreover, Paananen is optimistic that AI will drive innovation, noting that Supercell is already using it to develop new types of games.

"I've seen some internal prototypes, but it's super early," he said. “I think it's going to take a few years for somebody to invent something completely new on that front.

"But it's one of those things where it's not a question of if it's going to happen. It's a question of when it's going to happen and who will make it happen."

Supercell’s AI Innovation Lab in Helsinki invites external creators to freely experiment with its IP to spark new ideas. He notes that the outcomes may not even resemble traditional games but instead offer entirely new experiences powered by AI.

Following a successful pilot in Helsinki, the company has also expanded its AI Innovation Lab to San Francisco and is seeking a leader to drive its growth in the Bay Area.